Amundi, Europe’s largest asset manager, has begun to favor the Turkish lira (TRY) amid a return to orthodox monetary policy in Turkey since the elections in May.
Paris-based Amundi, which manages USD 2 trillion worth of assets, announced that it has taken its first step in this direction by abandoning its view that the TRY will depreciate much more, although it has limited the increase in the amount of TRY in its portfolio, considering the possibility that the depreciation in TRY will continue.
“We started to include a small amount of TRY in the portfolio a few weeks ago,” Sergei Strigo, co-head of Amundi’s emerging markets fixed income unit, told Reuters, referring to the process of improving their negative outlook on TRY.
Strigo said last week’s policy rate hike to 40% was “very positive” and a sign of seriousness in the fight against inflation. Still, the fund is “not ready yet to significantly increase the share of TRY in their portfolio allocation, but will definitely consider it” Strigo added.